Applying for car finance is really straightforward and can be done in a few simple steps. If you've never taken out a car finance deal before then you may be looking for some guidance on what you will need to prepare.
If you are accepted for car finance, you will need to provide a few copies of various information. If you are worried about getting approved for bad credit car finance, increasing your credit sore and having your documentation prepared can help you get approved faster. For potential lenders, they want the security that the information provide is correct and up to date and reduce the number of fraudulent activities.
When you apply for car finance, you will usually have to provide a few pieces of key information. This is usually because most lenders will run a credit check to have a look at your financial history and decide whether they want to offer you finance. You will usually be asked to supply full name, contact number, email address, date of birth, living address, living situation, license type and employment situation.
One of the easiest ways to provide your identity is to use your driving license. Having a full UK driving license increase your chances of getting approved for finance. However, you can still apply for finance with a provisional or European license. If you do not have your license to hand, you can sometimes use your passport to verify proof of identity. You can usually send a clear photo or scan of the front and back of your driving license and the paper counterpart if you do not have a card version.
Proof of address
One of the biggest aspects of your car finance application is traceability. Most lenders will usually ask for 3 years' worth of address history in the UK. If you have recently moved to the UK, finance providers can carry out previous checks in other countries. You can prove your living address by using a utility bill or bank statement. Lenders need verification that you are who you say you are and proof that you live at the address. Being registered on the UK electoral roll can also increase your chances of getting approved for finance as lenders can use the electoral roll to check your address history.
Proof of income
Many car finance providers also use affordability and income to get your approved, this means you will need to prove that you can afford a finance deal before you are offered it. If you are employed, you will usually be asked to show 3 months' worth of payslips or bank statements. If you are self-employed, most lenders will accept bank statements as long as they show regular and sufficient income. If you are self-employed and get paid cash in hand, then you could consider paying your wages into a UK bank account regularly to prove your affordability. If you receive benefits, you can use these as your income and may be asked to provide proof of the benefits you receive.